Bulawayo - London listed mining concern, Mwana Africa Plc is close to a landmark deal to finance the second phase of its Freda Rebecca gold mine in the country.Mwana announced during last week that if it clinched the deal this would see output doubling at its Freda Rebecca mine.
I am hoping that by the end of the month we will have secured the loan. It would probably be the first time a development institution has actually lent money into Zimbabwe in a very long time for a project, Kalaa Mpinga the companys chief executive said.
Mpinga said the funds could set the stage for the revival of a nearby nickel operation. He said Mwana Africa had enough cash to pay for the initial phase of the restart of Freda, which will produce 30 000 to 35 000 ounces of gold per year, but a second stage costing around US$8-million would boost output to between 70 000 oz and 80 000 ounces.
In terms of restoring confidence in the ability of Zimbabwe to operate as a normal place, this is going to be the test case, he said.
Mwana Africa reopened its Freda gold mine last month following improved economic conditions in Zimbabwe and the first commercial gold production was due this week.
At its peak in 2002, the mine produced 100 000 ounces per year and Mr Mpinga said this was the eventual target for the company.
He said finding higher grades and unlocking efficiencies would achieve the intended target.
Post published in: Economy